What is the amount of the adjustment

Reference no: EM131884358

Question: On 12/31/5, Mocha-Cola determined that its deferred tax liability was $950,000. The tax rate is 35% for 2015 and 40% for 2016. As of 12/31/16, Mocha-Cola has determined that its deferred tax liability is now $300,000. What is the amount of the adjustment that Mocha-Cola will make:

a) To its balance sheet?

b) To its income statement?

Reference no: EM131884358

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